This module provides you with an understanding of the role of finance in the contemporary economic landscape, covering the central topics in modern, behavioural and critical financial theory. It explores the nature and the causes of modern financial innovation and the way it affects economic agents. It discusses proper policy responses and regulation that might tame financial instability and enhance economic growth. The breadth of student knowledge is expanded by consideration of empirical instances of the phenomena under investigation.
On successful completion of the module, students will be able to:
The module is delivered by weekly workshops comprising a combination of lecture and seminar components. The lecture component of the workshops will discuss the key issues of each topic. Students can follow up with more detailed reading in their own time. Lecture components of the workshop lay the preparatory ground for the application of knowledge and expanded discussion with regard to practical issues via the seminar component. The seminar component of the workshops are intended to enhance students' understanding of the material covered in the lectures.
| Definitive UNISTATS Category | Indicative Description | Hours |
|---|---|---|
| Scheduled learning and teaching | 22 two hour workshops | 44 |
| Guided independent study | Student independent study | 256 |
| Total (number of credits x 10) | 300 | |
This module is assessed through a class test (50%) at the end of the first half of the module, and an essay (50%). The class test will assess the fundamental aspects of the module listed below whilst, the essay, to be completed during the second teaching block, will assess the ability of students to write a report whilst pursuing taught themes in financial economics of interest to them.
| Learning Outcome | Assessment Strategy |
|---|---|
| Have an advanced understanding of the functions, institutions and instruments of finance, and how and why financial systems differ; | Class test |
| Critically appreciate key concepts and models from modern financial theory, and behavioural finance theory; | Class test |
| Demonstrate at an advanced level an understanding of developments in the financial system and its relationship to economic shifts in contemporary capitalism, and critically engage with theories from Critical Finance and the financialisation literature; | Essay |
| Understand the nature and determinants of financial innovation, it's impact on the broader economy and on financial stability, and to compare critically developments in the regulation of finance | Essay |
| Pursue empirical research of contemporary financial issues at an advanced level | Essay |
| Description of Assessment | Definitive UNISTATS Categories | Percentage |
|---|---|---|
| Coursework | 3000 word essay | 50% |
| Practical exam | Class test (2 hours) | 50% |
| Total (to equal 100%) | 100% | |
It IS NOT a requirement that any element of assessment is passed separately in order to achieve an overall pass for the module.
Brett, M. (2003) How to read the Financial Pages London: Random House
Copeland, Thomas E., J. Fred Weston and Shastri, Kuldeep (2003) Financial Theory and Corporate Policy London: Pearson
Hull, J. C. (2011) Fundamentals of Futures and Options Markets, Edinburgh: Pearson Education Limited.
Howells, P. and Bain, K (2007) Financial Markets and Institutions, London: Pearson Education Limited
J. Toporowski and J. Michell (2012) Handbook of Critical Issues in Finance London: Edward Elgar
Akerlof, G. A., and Shiller, R. L. (2009) Animal Spirits: How Human Psychology Drives the Economy and Why It Matters for Global Capitalism, Princeton: Princeton University Press.
Davidson, P. (2002) Financial Markets, Money and the Real World, Edward Elgar.
Goodhart, C. (1989) Money, Information and Uncertainty [Second Edition], London: Macmillan Education Ltd.
Hoffman, P. T., Postel-Vinay, G., and Rosenthal, J.-L. (2007) Surviving Large Losses: Financial Crises, the Middle Class, and the Development of Capital Markets, Cambridge and London:
Miller, M. H. (1992) "Financial Innovation: Achievements and Prospects," Journal of Applied Corporate Finance, 4(4): 4-11.
Shiller, R. J. (2012) Finance and the Good Society, Princeton and Oxford: Princeton University Press.